How will the US-China trade war impact South Africa?

A trade war is brewing between the world superpowers, USA and China and this could have dire economic consequences, not just for the two countries but globally too.

The possibility of such a war has been in focus after US President Trump announced tariffs on Chinese goods and China retaliated with tariffs on most agricultural imports from the US.

What happens in this regard is a possibility of trade diversion. So even if the US and China are having this battle, trade diversion means what may happen is that many of their market groups will be dumped on other markets to ensure that they don't overconsume or overproduce.

Lebohang Pheko, Senior Research Fellow and Political Economist at Trade Collective

READ: **China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’**

South Africa and other African countries need to look at opportunities we can leverage from either countries at this particular time. Mainly because we need to find our own sense of agencies.

Lebohang Pheko, Senior Research Fellow and Political Economist at Trade Collective

ALSO READ: China hits back. Trade war with US erupts

It's important to remind ourselves that South Africa is a small open economy. Which means even if we are not exporting to the US directly, we may as well be exporting indirectly by sending our primary products which are commodities and raw materials indirectly to the to the US through Europe, India or China.

Professor Adrian Saville, CEO of Cannon Asset Managers and Professor at Gordon Institute of Business Science

Listen to the full interviews here:


Recommended

by NEWSROOM AI
Read More
'The quicker we can start treatment, the quicker we get on a road to recovery'

'The quicker we can start treatment, the quicker we get on a road to recovery'

Cup Cakes of Hope founder Sandy Cipriano shares what her organisation is doing to raise awareness for cancer.

Hubby embarrassed after thinking staff wrote b**** on wife's take-away sarmie

Hubby embarrassed after thinking staff wrote b**** on wife's take-away sarmie

Khabazela shares tweets and Facebook posts that have gone viral.

[WATCH] Brawl captured on video by nosy neighbour has social media in stitches

[WATCH] Brawl captured on video by nosy neighbour has social media in stitches

Khabazela shares tweets and Facebook posts that have gone viral.

Land hunger creates solid foundation for national grievance - Kgalema Motlanthe

Land hunger creates solid foundation for national grievance - Kgalema Motlanthe

South African former president guards against being negative in the current state of South African politics.

China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’

China, US on the verge of waging Trade War. Get ready to be ‘collateral damage’

The Money Show’s Bruce Whitfield interviews Siya Biniza, Political Economist at Political Economy South Africa (PESA).

China hits back. Trade war with US erupts

China hits back. Trade war with US erupts

China, the world’s second largest economy, retaliated against US tariffs on its goods. Refilwe Moloto interviews Donald Mackay.

Popular articles
How to buy a new car even if you don’t really have enough money for it

How to buy a new car even if you don’t really have enough money for it

South Africans are increasingly buying cars they can’t afford using balloon payments, says consumer journalist Wendy Knowler.

'Government is going to hike personal income tax. There’s no doubt'

'Government is going to hike personal income tax. There’s no doubt'

SA’s personal income tax burden is among the world’s 10 heaviest. It’s about to get even worse, warns economist Mike Schüssler.

Hubby embarrassed after thinking staff wrote b**** on wife's take-away sarmie

Hubby embarrassed after thinking staff wrote b**** on wife's take-away sarmie

Khabazela shares tweets and Facebook posts that have gone viral.

Ndlovu Youth Choir bows out graciously, as US singer Kodi Lee crowned AGT winner

Ndlovu Youth Choir bows out graciously, as US singer Kodi Lee crowned AGT winner

The SA choir that has won the hearts of Mzansi is excited about what lies ahead and says 'this is only the beginning'.

EFF: Pauli van Wyk and Marianne Thamm are working with Gordhan and Hanekom

EFF: Pauli van Wyk and Marianne Thamm are working with Gordhan and Hanekom

Economic Freedom Fighters Mbuyiseni Ndlozi explains why it banned the Daily Maverick and amaBhungane from attending its events.

Burger King rebrands as Bacon King (but drops 'ham' from the word 'hamburger')

Burger King rebrands as Bacon King (but drops 'ham' from the word 'hamburger')

"They seem to have succumbed to consumer pressure," says branding and advertising expert Andy Rice.

[WATCH] Reporter saying dead man 'was unavailable for comment,' goes viral

[WATCH] Reporter saying dead man 'was unavailable for comment,' goes viral

Khabazela shares tweets and Facebook posts that have gone viral.